You’ve probably heard of supply chain finance, and you may know that it can be a highly effective way to free up the invaluable that’s cash trapped in your supply chain.
But what does it all really mean? We wanted to take away the confusion and create a real, Plain English guide that walks you through the key questions about supply chain finance:
– What is it?
– Why should you use it?
– How do you actually do it?
We’ve also laid out a number of compelling statistics about supply chain finance and its numerous benefits. You can view the infographic below – feel free to share it on your own site, too, using the code beneath.
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Here are a few of the standout numbers when it comes to supply chain finance…
– 90% of EMEA companies don’t have a transparent view into their cashflow.
– 95% of companies have experienced late invoice payment from buyers in the last year.
– There are at least 1500-2000 companies globally utilising supply chain finance.
– It is estimated that the buyer wil capture 35-50% of all savings, while suppliers will get 25-45%. Another 15% goes to the financial intermediary while the remaining 5% is for the service provider.
– 80% of UK SMEs fail due to cashflow issues.
– According to a U.S. Bank study, 82% of business failures are due to poor cash management.
– The estimated market size for reverse factoring ranges between US $255bn and $280bn.
– A growth rate of up to 40% per annum is predicted for supply chain finance in the coming years, stabilising to 10% growth in 2020.